Tullow Oil, Perupetro agree on licenses deal in Peru

London-based oil and gas company Tullow Oil and Peruvian state-run oil company PeruPetro have concluded negotiations for the purchase of five new licenses offshore Peru, adding some 28,000 square kilometers (10,811 square miles) to its portfolio, Kallanish Energy learns.

The entrance to Peru’s oil industry, yet to be approved by the Peruvian energy and economy ministries, is expected to be formalized within the first quarter. Tullow will acquire 100% stakes in Blocks Z-64, Z-65, Z-66, Z-67 and Z-68, off the Pacific coast.

Additionally, Tullow has agreed to purchase a 35% interest in the Z-38 license through a farm-down from Karoon Gas Australia. The undisclosed transaction is also subject to government approval. The asset offers potential for drilling as soon as 2019, given its high quality 3D seismic and the Marina prospect.

“The new acreage will complement the Group’s South America position and contains a number of attractive leads and prospects,” the firm said in a Wednesday update to investors.   

Other upcoming activities on the continent include preparations for initiating drilling in early 2019, or even late 2018, in two licenses in Guyana; a 3D survey of Jamaica’s Walton Morant license in April; and potentially drilling the Goliathberg prospect in Suriname.

“With our diverse, low-cost assets and high-graded exploration portfolio, enhanced by recent license additions in Côte d’Ivoire and Peru, we have a strong foundation to grow the business and further reduce our debt,” said CEO Paul McDade.

In December, the firm was awarded a 90% interest in two additional onshore licenses in in Côte d’Ivoire (CI-521 and CI-522), building on the four onshore exploration licenses the group purchased laast September. 

The “hotspots” of Guyana/Suriname and “exciting opportunities” in Côte d’Ivoire and Peru will contribute to the company’s planned low-cost, high-impact exploration campaigns, Tullow said.

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